When you’re shopping for a home, you might focus quite a bit on mortgage interest rates and home prices. After all, these two factors will help to determine your eventual monthly payment. But there are some other things you should consider while home shopping, because your homeowners insurance rates can vary depending upon these factors.
Location. You already now that location is key, both in terms of the home’s value and the presence of fire hydrants in your neighborhood can help you achieve a lower premium. But if your new home happens to be located in a flood zone, your lender might require you to purchase additional flood insurance.
Consider a newer home. A new home is less likely to experience problems with the electrical, plumbing or heating systems, so homeowners insurance companies will often offer you a discount for purchasing a new home.
Look for safety features. You might get a break on your premiums if you new home has an alarm system, deadbolt locks, and fires, which lowers the likelihood that you will eventually file a claim on your homeowners insurance. If your new home has an inside sprinkler system, you might earn an even bigger discount.
Watch your credit rating. You’re probably doing this anyway, if you’re shopping for a new home. But your credit rating will impact more than just your eligibility for a mortgage. Some lenders might offer you a loan even with less-than-perfect credit, but that low score will still impact your homeowners insurance rates. As you search for your new home, take steps build your credit score so that you can save money on your premiums.